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Modification for change orders.

Though ongoing dialogues with the New York City School Construction Authority (SCA), the Subcontractors Trade Association has successfully worked with the agency to support better business with subcontractors.

The result? That the SCA has altered the way it handles change orders.

Fred Levinson, chairman of the Subcontractors Trade Association's NYC School Construction Authority Committee and former president of Subcontractors Trade Association states, "Subcontractors will no longer bear the burden of funding these orders themselves and will now have ample time to negotiate a final price. SCA's modifications are a major development for our industry."

For any change order equaling or exceeding $50,000, including the contractor and all the subcontractors involved in that specific change order, the Authority's engineer/architect will provide an estimate along with the Notice of Direction (NOD) for the change.

The general contractor is permitted to bill 80% of the estimate; and within 90 days of receiving the change order, the general contractor must provide an estimate for the job.

This is a very important change for members of the Subcontractors Trade Association, and a significant progression from the longstanding practice in which contractors themselves would end up funding the work specified in change orders, and had only 15 days to respond to the SCA with a revised price.
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Publication:Real Estate Weekly
Article Type:Brief article
Geographic Code:1USA
Date:Sep 3, 2008
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